When moving into a new apartment, there are many aspects to consider. If you’re looking for convenience and a speedy moving process, you may consider furnished apartments vs unfurnished. Some apartments consist of furniture, allowing the renter to complete their move-in or move-out day with ease. Furthermore, there’s no right or wrong option between fully furnished apartments vs unfurnished. Therefore, depending upon the renter’s overall wants and needs. In this article, we cover the key differences between furnished vs unfurnished apartments. In addition to a list of pros and cons for each option.
What Does Fully Furnished Mean in Real Estate?
When searching for an apartment, you may come across the term “fully furnished.” Most individuals understand that a fully furnished apartment comes with furniture, but are not aware of the details. Furthermore, a fully furnished unit can consist of all the furniture and household materials to survive. Some of these apartments come with kitchenware, bathroom items, and at times, even bed sheets. Renting a fully furnished apartment eliminates the need for a moving company, also making it easy to move in or pick up and leave.
What is an Unfurnished Apartment?
An unfurnished apartment is common within the real estate industry. Most tenants own personal items or have style preferences when it comes to the comfort of their own home. Therefore, most of the time, apartments are unfurnished and left up to the tenant to decide how to decorate their rental. However, don’t confuse an unfurnished apartment with being entirely empty, because these units still consist of common home appliances.
Advantages of Furnished Apartments Vs Unfurnished
The advantages of furnished apartments vs unfurnished are endless. Renting a furnished apartment saves time and money. There’s no need to spend time preparing the rental, along with hiring someone to move heavy furniture and items from one place to another. Furthermore, there are financial advantages in both the short and long-term when it comes to renting a furnished apartment. Below we list some of the common benefits of furnished apartments vs unfurnished.
Pros for the Tenant:
- Ability for a quick move-in, no need to prepare personal items, and hire a moving company.
- Easy to move out. Great for individuals with limited free time, gather a few personal items, and be able to pick up and leave at any time.
- Save money on purchasing furniture for the house.
- No need for wear and tear on items and furniture you own.
- No pressure to obtain renters’ insurance since most of the items within the unit are owned by the landlord.
- Ideal for renters who transition often, whether it’s for work or people who don’t desire a long-term rental commitment.
Benefits of Furnished Apartments for Landlord:
- Furnished apartments tend to be more appealing to tenants, thereby reducing the time between renters.
- Ability to deduct the cost of furniture purchases as a tax deduction while charging more in monthly rent. On average, a landlord with a furnished apartment charges roughly 10% to 50% more for the rental rate.
- Higher security deposit to protect against any potential wear and tear or damage to the furniture.
Cons of Furnished Apartments Vs Unfurnished
- Most of the time, the furniture’s utilized by many tenants without proper cleaning.
- The tenant can’t select the furniture and personalize the space to fit their personality.
- Higher rental rates for the tenant, it’s cheaper to rent an unfurnished unit.
- Potential for the tenant to destroy the furniture. In addition, it’s normal for standard wear and tear, eventually leading to the cost of replacing the furniture.
- Higher insurance premiums for the landlord to cover the furniture and other items.
- Lack of storage, considering the rentals are already filled with items/furniture.
Key Differences for Furnished Apartments Vs Unfurnished
- Furnished apartments allow for a simple move-in and move-out day, with no need to carry heavy furniture.
- Furnished apartments tend to cost more money each month.
- Security deposits and insurance costs are higher to account for the value of the furniture.
- The tenant can’t design and decorate the home to their standards and preferences.
Legal Considerations for Furnished Apartments
- If the tenant damages or destroys the furniture, the landlord has the right to deduct money from the security deposit.
- Obtaining renters’ insurance is not necessary, although the tenant may want to protect their electronics, jewelry, and other personal items.
- Regardless if the units furnished or unfurnished, both situations must follow the “Federal Fair Housing Act.”
- Within the lease, it must mention the furniture inventory and the overall maintenance clause. As a landlord, take photos of the unit fully furnished, along with keeping receipts of each furniture purchase.
FAQ Involving Furnished Apartments
1.) Do Apartments Come with Furniture?
- No, most apartments do not come with furniture. Although having a rental property that’s fully furnished makes things easier on a tenant, it’s not always desired since most individuals want to design and decorate their home to their standards.
2.) Do landlords charge additional money for fully furnished Apartments?
- Yes, on average, landlords charge 10%-50% more in monthly rent when an apartment’s fully furnished.
3.) Is the Tenant responsible for any damages to the Furniture?
- Yes, the tenant’s held responsible for any damage done to the furniture outside of any normal wear and tear that occurs over a period of time.
4.) What type of furniture comes with a furnished Apartment?
- The furniture within a fully furnished apartment is typically standard. Consisting of couches, chairs, kitchen tables, curtains, clothing drawers, pots and pans, decorations, lamps, end tables, coffee tables, and sometimes televisions, along with other appliances.
5.) Are Utilities often included in Furnished Apartments?
- Yes, most of the time, utilities are included with furnished apartments. Most landlords who own furnished apartments want to simplify every aspect of rental properties. Therefore, to make the tenants’ lives easier if the landlords include furniture, they typically furnish the units.
6.) Are there higher security deposits for furnished Apartments?
- When an apartment’s fully furnished, the landlord may request a higher security deposit to protect any potential damage to the furniture within the home. A security deposit is a way to hold the tenant responsible for destroying anything within the rental. If the house or any furniture needs repairs, the landlord will apply some or all of the security deposit to complete those tasks.
Is it Worth Renting a Furnished Apartment?
Renting a fully furnished apartment has advantages and disadvantages; depending upon your rental needs, it can be worth every penny. Furthermore, some individuals move frequently, so it’s ideal to minimize their possessions, making it easier to move from place to place. In addition, renting a place that’s fully furnished saves the upfront costs of hiring a mover. Although in the long-run the tenant pays the price, considering the price for a fully furnished apartment gets reflected in the monthly rent.
Outside of the financial aspect for furnished apartments vs unfurnished, every individual has different preferences, which means your style and decor taste may vary from the potential renter. Therefore, if you’re a landlord looking to furnish your rental unit, stick with neutral colors and style to appeal to a wider group of tenants. Lastly, whether you’re a tenant or a landlord, it’s vital to document each furniture item in the house along with the furniture’s overall condition to limit disputes when the lease ends. When it involves furnished apartments, both sides need to understand the expectations involving the furniture and how to properly maintain the items. Renting a furnished apartment is not for everyone; therefore, weigh out the pros and cons before deciding on this apartment rental route!